| On Junuary 31, 2001, the Congressional Budget Office (CBO) presented testimony on The Budget and Economic Outlook: 2002 -- 2010. This was prior to arguments and final resolution of Bush's tax cut. At the time, a $1.6 trillion income tax cut was proposed over the next 10 years. Without the tax cut, projected surpluses were as follows: |
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| The total projected surplus was approximately $5.3 trillion over 10 years. Almost $2 trillion of this came from income taxes (personal and corporate). After the tax cut, the surplus would look like this: |
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| Notice that instead of a $5.3 trillion surplus, we are now down to an approximate $3.7 trillion surplus. Entitlement surpluses haven't changed at all and we've still got an income tax surplus represented by the blue section. September 11th, the never ending war, and the falling economy took care of most of the blue income tax section and we are now borrowing heavily from investors. But, as you can tell by examining the national debt and the entitlement trust fund increases, the red entitlement sector is right on track. |
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